The automaker reported strong financial results on Tuesday for the fourth quarter to March 2018.
Its net profit jumped 50 per cent to Rs 1,155 crore for January-March. Analysts in an ETNow poll predicted a profit of Rs 1,055 crore.

The company had reported Rs 770 crore profit in the year-ago quarter. The figure included numbers for M&M and MVML.

"The board has recommended a post-bonus dividend of Rs 7.50 (150 per cent) per share of face value Rs 5 and will be paid to those shareholders whose names stand registered in the books of the company as on the book closure date," the company said in a statement.

CLSA reiterated ‘Buy’ on M&M and also upped target price to Rs 1,075 from the previous Rs 960. “M&M delivered strong Q4 results led by a better-than-expected margin. The rural outlook improved on normal monsoon and big MSP hike expectations and new MPV launch in FY19 to boost SUV segment volume. We expect strong 18 per cent EPS CAGR over the next two years and valuations are looking attractive,” CLSA reasoned.

Morgan Stanley maintained ‘Overweight’ with a target price of Rs 1,063. “At M&M and MVML level, numbers were in line with expectations. The key positive was the automotive EBIT margin,” the brokerage house said.

The stock was trading up 2.34 per cent at Rs 889.15 on Wednesday morning.